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At least 16 individuals have perished after a huge fire erupted at a apparel factory in Bangladesh, with officials cautioning that the fatality count could rise.

Sixteen bodies have been retrieved but were incinerated beyond recognition, the firefighters stated.

Grief-stricken relatives gathered outside the four-storey factory in the Mirpur district of Dhaka on Tuesday in search of their loved ones still unaccounted for.

The inferno, which started at the factory around lunchtime, was extinguished after several hours. But an nearby chemical warehouse remained ablaze, officials reported.

Up until 21:00 local time (15:00 GMT) that day, the fire at the chemical warehouse had not been completely doused, media reports indicated.

Fire service officials have not established which of the two buildings ignited initially.

Based on witnesses, the chemical warehouse contained industrial bleaches, plastic and chemical peroxide, all of which can worsen fires. Polymer products also releases poisonous gases when combusted.

Police and military officers are still searching for the proprietors of the factory and the warehouse, fire service director Mohammad Tajul Islam Chowdhury briefed journalists.

An probe on whether the warehouse was running according to regulations is also ongoing, he added.

Tearful family members waited outside the burned buildings, many of them holding photographs of their lost relatives.

Present at the scene is a man searching desperately for his daughter, Farzana Akhter.

"When I learned of the fire, I came running. But I still haven't found her... I just want my loved one back," he stated to reporters.

The devastating event has once again emphasized the safety concerns plaguing Bangladesh's apparel manufacturing, which provides jobs for millions of workers and is a significant provider of foreign revenue for the country.